Wealth has grown nearly 70 times in 24 19.0% CAGR for over years ** 24years** vs. NIFTY 500 TRI CAGR of 11.6% HDFC Equity Fund (An Open Ended Multicap Scheme) Consistent performance across market cycles Riskometer This product is suitable for investors who are seeking*: Capital appreciation over long term Investment predominantly in equity and equity related instruments of medium to large sized companies *Investors should consult their financial advisers if in doubt about whether the product is suitable for them. ** Past Performance may or may not be sustained in future. For detailed performance please refer Slide 19 July 2019 1
HDFC Equity Fund – Proven track record across market cycles over 24 years Period Since Mar 18 Mar 08 – Mar 18 Jan 95 – Mar 01 Mar 01- Mar 08 Next cycle -- Corporate Capex / Banking / Auto /FMCG/ Leading Banks / Capex ? IT stocks Commodities NBFC Sectors Rs 10,000 invested in HDFC Equity Fund at inception has grown to ~Rs 6.96 lacs at a CAGR of 19.0% Rs 10,000 invested in NIFTY 500 TRI at scheme inception has grown to ~Rs 1.46 lacs at a CAGR of 11.6% Refer to slide 28 for full performance details HDFC Equity Fund NAV is up 70 times since inception i.e 1 st Jan 95’ vs 15 times for benchmark NIFTY 500 TRI during the same period Disclaimer: Past Performance may or may not be sustained in the future. Returns as on 31 st May 19. The above returns are of regular plan - growth option. HDFC Mutual Fund/AMC is not guaranteeing any returns on investments made in this Fund. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Historical performance indications and financial market scenarios are not reliable indicators of current or future performance. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above stocks/sectors. The Fund may or may not have any present or future positions in the Stocks/Sectors. NAV as on 31 st May’ 19 – 696.471 2
HDFC Equity Fund – Correct positioning in each cycle since inception Cycle 1 Since Inception Jan Cycle 2 Mar 00 - Mar 08 Cycle 3 Mar 08 - Mar 18 Total from 95 - Mar 00 Since Since Capex / Auto / Mar 18 Inception Leading sectors IT stocks Leading sectors Banking / Leading sectors NBFC / Jan 95 Commodities FMCG (x) times (x) times (x) times (x) times (x) times NIFTY 500 TRI 1.5 NIFTY 500 TRI 3.3 NIFTY 500 TRI 2.6 1.1 14.6 HDFC Equity Fund 2.5 HDFC Equity Fund 6.5 HDFC Equity Fund 3.6 1.2 69.6 Jan 95 – Mar 00 : IT lead the market, NIFTY IT Index up 70 times^, old economy stocks/sectors out of flavor; flat ! HDFC Equity Fund stance – The Fund was an early investor in IT, NAV up 2.5 times vs. 1.5 times of benchmark Mar 00 – Mar 08 : Capex / Banking / Commodities lead the market, Power EPC Co. up 33 times. Industrial Conglomerate up 15 times; FMCG major down 6%! HDFC Equity Fund stance – The Fund was overweight in old economy stocks, NAV up 6.5 times vs. 3.3times of benchmark Mar 08 – Mar 18 : Auto / FMCG / NBFC stocks lead the market. Nifty Auto up 5.76 times, NIFTY FMCG up 4.49 times, NIFTY Consumption up 3.15 times; NIFTY Metals and NIFTY Energy up only 0.95 times and 1.5 times respectively ! HDFC Equity Fund stance – The Fund was an early investor in FMCG / Auto, NAV up 3.6 times vs. 2.6 times of benchmark HDFC Equity Fund is currently overweight on Corporate Banks, Industrials, Energy, Utilities, IT Outperformance vis-a-vis benchmark. Past Performance may or may not be sustained in the future. In view of the individual circumstances and risk profile, each investor is advised to consult his / her professional advisor before making a decision to invest in the Scheme. Historical performance indications and financial market scenarios are not the reliable indicator for current or future performance. HDFC Mutual Fund/AMC is not guaranteeing returns on investments made in the Scheme and/or should not be construed as an advice for investing in the above stocks/sectors. The Fund may or may not have any present or future positions in the Stocks/Sectors. . For detailed performance please refer Slide 19. ^ 1 st jan 1996 to 31 st Mar 2000 3
HDFC Equity Fund – Consistent alpha generation for over 24 years HDFC Equity Fund - Outperformance vs NIFTY 500 TRI (CAGR) Year ended 1 year 3 year 5 year 10 year Mar 96 Mar 97 -10.4 Mar 98 14.3 -4.0 Mar 99 60.6 16.6 Mar 00 20.0 32.5 10.0 Mar 01 8.5 26.7 15.2 Mar 02 30.0 18.4 25.0 Mar 03 6.3 13.5 22.7 Mar 04 17.4 18.0 15.9 Mar 05 4.9 8.5 13.1 11.6 HDFC Equity Fund has a history of generating Mar 06 23.0 14.0 16.0 15.7 alpha in each of 10 year fiscal periods since Mar 07 2.2 8.4 9.3 17.8 inception. Mar 08 -6.6 4.1 6.1 15.6 Mar 09 4.8 1.2 4.7 10.1 Similarly, Fund has generated alpha in more Mar 10 27.0 5.9 7.5 10.4 Mar 11 11.5 11.7 6.2 10.6 than 90% of 3, 5 year fiscal periods Mar 12 0.1 10.1 5.6 7.3 Mar 13 -2.8 2.6 6.1 6.2 Mar 14 3.3 0.1 5.8 5.2 Mar 15 6.6 1.9 3.4 5.4 Mar 16 -4.7 0.9 -0.1 3.0 Mar 17 5.0 1.3 0.8 3.3 Mar 18 -4.1 -1.8 0.6 3.5 Mar 19 5.4 2.0 1.0 3.3 Periods HDFC Equity Fund 18 20 19 15 outperformed Total Number of periods 23 22 20 15 Outperformance of periods 78% 91% 95% 100% HDFC Equity Fund (%) Outperformance / Alpha is the return generated by the scheme over the returns generated by NIFTY 500 TRI Disclaimer: . Past Performance may or may not be sustained in future. For detailed performance please refer. Slide 27 and 28 The above outperformance is based on returns of regular plan - growth option. Market scenarios are not the reliable indicators for current or future performance. The same should not be construed as investment advice or as any research report/research recommendation. Above chart is for illustrative purpose only. 4
A track record of consistent dividends^ Good years, bad years, 23 Dividends in 20 years since 1999 CY (since 1999) 1999 1999 2000 2000 2002 2003 2003 2004 2004 2006 2007 2008 2009 Dividend per unit (Rs) (A) 1.6 2.0 3.0 1.7 1.2 2.0 2.5 1.5 3.0 5.0 5.0 5.5 3.0 NAV (Record Date) (B) 16.0 19.1 21.5 12.7 13.5 17.1 18.8 20.8 23.4 41.9 40.4 45.4 23.3 Dividend Yield (%) ( A / B ) 10.0 10.5 14.0 13.4 8.9 11.7 13.3 7.2 12.8 11.9 12.4 12.1 12.9 CY (since 1999) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Dividend per unit (Rs) (A) 4.0 4.0 4.0 4.0 4.0 5.5 4.5 5.0 5.5 5.3 NAV (Record Date) (B) 46.9 49.0 44.0 41.4 43.8 59.8 41.9 54.9 55.5 56.4 Dividend Yield (%) ( A / B ) 8.5 8.2 9.1 9.7 9.1 9.2 10.7 9.1 9.9 9.3 For complete dividend history details visit www.hdfcfund.com “It's not what we do once in a while that shapes our lives. It's what we do consistently.” ― Anthony Robbins ^Past performance may or may not be sustained in the future. All dividends are on face value of Rs 10 per unit. After payment of the dividend, the per Unit NAV falls to the extent of the payout and statutory levy (if applicable). There is no assurance or guarantee to Unit holders as to rate/quantum of dividend distribution or that the dividends will be paid regularly. Dividend payout is subject to availability of distributable surplus. NAV of the Regular Plan - Dividend Option has been considered for calculating dividend yield Dividend was declared twice in year 2000 (March and December), 2003 (July and September) and 2004 (March and November) 5
HDFC Equity Fund – A Multicap Fund with dynamic yet controlled exposure to midcaps • Fund takes controlled exposure to midcaps / smallcaps both at stock and aggregate level • Asset allocation to midcaps / small caps is a function of outlook and valuations HDFC Equity Fund reduced allocation to Midcap / Small cap stocks from 27% in Mar 2014 to 17% in Mar 2019 Source: MFI Explorer, Bloomberg. From Mar 18: SEBI Classification, Before Mar 18: First 100 companies in the NIFTY listed companies in terms of Market Capitalisation on the respective date are considered Large Caps, Next 150 companies are considered Mid Caps and companies beyond it are considered as Small Caps. Ddisclaimer: The exposure to various caps are subject to change depending on the market conditions. 6
HDFC Equity Fund – Differentiated Marketcap positioning vs Peers Cash, Foreign Equity, Debt Large Mid Small Instruments & Net Current Assets HDFC Equity Fund 82.0 11.9 5.7 0.4 Average of Peer Multicap Funds 65.6 16.7 10.4 7.3 Median of Peer Multicap Funds 67.3 16.67 9.6 5.0 Large cap earnings as reflected by NIFTY50 EPS growth is estimated at 17.5% CAGR over FY18-21E compared to 3.5% between FY13 -18 HDFC Equity Fund is positioned well to benefit from the same due to a predominantly large cap portfolio Source: MFI Explorer (As per SEBI Categorization) Data is for all the funds in the Multi Cap category. (32 other funds) Portfolio details as on May 31, 2019. It includes Universe is SEBI category for open ended Multi-cap schemes as per MFI Explorer. The allocation between different caps is subject to change depending on the market conditions. 7
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